Comparing it with SLR video is kind of silly, I mean it's just not going to beat a Canon 5D MkII or whatever with a sensor like 100x larger and much more expensive glass. But...it is VERY impressive for a phone camera, by far the best I've seen yet. In the video where the guy is going outdoors to indoors and shooting through the window, I'm very impressed by how well the camera handles the contrast. There's none of that jumpy iris trying to find the right exposure, it's very smooth, and the image stabilization seems to work.
I can already tell my point and shoot camera will not be used once the 4S arrives at my door.